There are a large number of Scalping forex strategy used by experienced traders FOREX, but I in turn want to tell you about a few of them — simple enough, but the effectiveness has been tested by many years of trading.
To understand these trading strategies, you need to know some technical terms:
- «Pivotal point» — pivot point. Pivotal point — this is the maximum or minimum point, which reached a price movement before touching a minimum or maximum of the day.
- «Swing» — Swing is nothing more than vibrational movement from one point of the rod pivot point until the next following core point (see the example in Figure 1).
Scalping strategy of parallel motion.
First Scalping forex strategy — a way of parallel motion (see Figure 2). This type of trade is used during the long move up or down for the application of kickbacks. The basis of this technique, trade is the idea that the quantity of motion CD must be equal to the motion of AB. More lucrative trade deals are open at a time when price was no more than 25% of the movement from point C to point D.
Rules of the transaction
— Conclude a deal to purchase once the price was 25% higher than the core of the point C and immediately place a stop-loss at point C.
— Move the stop-loss level before entering the market (ie zero), once the price has advanced 50% to fixed targets.
— Once the price has passed the point B, set a trailing stop — its size is equal to 25% of traffic to your targets.
— Close the deal at a profit at point D, or waiting for closing the trailing stop.
This forex strategy can be used as soon as you are going to trade in the direction of the main trend. Do not try for her help to catch small movements against the trend. Remember that our goal in the trade, catch — complete oscillatory movements in the market. It is possible that using this strategy you’ll have to make deals and enter into the market several times, especially if there is a complex consolidation.
Small market trends.
If you trade in small trend movements, wary of the many trading systems that are based on transactions to buy at new highs and making deals to sell to new lows. Need to move with the trend until it is spread. And while some highly appreciate trading systems include tactics to approximate the stop-loss to the level of entry into the market as a whole system of buying at new highs — it is the worst of all possible options, which only leads to a double loss, as soon as the market is in its phase correction. All that is enough to say in favor of this trading system is that it is very useful for large oscillatory movements in the market.
Scalping in trending channel.
Trending channel (see Figure 3) represents a line 2 core peak and 2 bar minimum. Enter into transactions for the purchase or sale on the core points of the resulting trend channel and fix the lucrative deals while moving at 50% or 75% of the estimated vibrational next target, depending on the direction of price movement in the market. If the market is trending in an upward motion, cover the gain on trading items for sale in the motion by 50% to the estimated lower target, or close a lucrative deal to trade items to buy at 75%-th point of a market rally. When a falling trend, respectively, close trading positions for sale on a 75% first point under consideration rally down and to buy at 50% point of the considered rally upwards.
Safety stop-loss. Begin to place stop-loss at a distance the width of the formed channel on your point of entry into the market. Then shift the stop-loss at the entry level into the market as soon as the market price goes way equal to 50% to certain targets. Ie we are talking about moving the stop-loss at the near the pivotal point, just after the market started to move in your specific direction, and it makes sense to talk about the formation of the rod points.
It is possible that you may want to enter into transactions for the purchase or sale on the points of reaction or rally. At 2-day market moves against the trend (see Figure 4) only enter into transactions for purchase at the point of 50% in the presence of the upward trend and makes a deal to sell to a point 50% in the presence of a downtrend. Then fix the profits at the point of finding the previous rod. Your stop-loss orders must be placed at the distance of the width of the resulting price channel from the point of entry into the market. Move the stop-loss at the entry level into the market as soon as the market took 50% of the price movement to your specific targets, ie should move the stop loss point on the rod, which was formed when the price moves in the market in your area.
If the price on the market bounced from the boundary of the formed channel (see Figure 5) and consolidation of the first trading day went the distance in 50% of the width of the channel, to bargain for the purchase of the presence of an uptrend or a bargain on the sale if the downtrend in the point 75% .
There are several variants of this approach. If there is an uptrend in the market, some traders buy on a downward closing the second trading day (see Figure 6) while also trying to catch a one-day pullback prices up and / or price movement in the market back to the last rod point. From this it follows that if profit has not been detected within 2 trading days, and the price on the market closes on your side (see Figure 7), or close the income, or move the stop loss at the closing (plus or minus 1 point ).